MBNA, the world's largest independent credit card lender, yesterday said quarterly profit fell by 94 per cent, reflecting a big restructuring charge, and said 2005 earnings growth will be "significantly below" forecasts.

First-quarter net income for MBNA, which employs 1,100 people in Carrick-on-Shannon, fell to $31.7 million (€24.3 million), or two US cents a share, from $519.7 million, or 40 US cents a share, a year earlier.

Excluding a charge for job cuts, call centre closures and contract terminations, profit totalled $514.1 million, or 40 US cents a share. On that basis, analysts had forecast 46 US cents a share.

MBNA said unexpectedly high payment volumes from US card customers hurt operating results. "It is a difficult environment right now," said chief executive Bruce Hammonds in a statement.

MBNA also said that "based on the first-quarter results and trend, management believes that MBNA's 2005 earnings per share will be significantly below the 10 per cent growth objective".

A 10 per cent increase equates to full-year profit of $2.26 per share. That would match the average analyst forecast.

MBNA recognised $767.6 million of an expected $785 million pretax charge in the first quarter.